Odds On is popping up in all kinds of places since it’s April 12^th launch. Here are just a few highlights:

1. 800ceoread Business Bestseller

This influential business book site put out their bestseller list for the month of April and Odds On makes it to #11.

2. #1 Bestseller on Tadas Viskanta’s Abnormal Returns Book list for April and featured on the influential blog: Click Here

Tadas is esteemed among the highly technical investing crowd and his blog includes in its readership some the most respected thinkers and leaders of our industry.

3. YNAB (“You Need a Budget”) Podcast #221: Click Here

Jesse Mecham’s budgeting software ‘YNAB’ is well known among budgeting gurus and has an extremely devoted following.

4. Beyond 50 Radio Show: Click Here

Daniel Davis has hosted the Beyond 50 radio show for over 10 years and boasts syndication on over 150 podcast networks.

5. Robin Powell blog interview: Click Here

Robin is a communications expert and is leading the evidence-based investing movement in the United Kingdom. His regularly published videos are helping get the story out around the globe.

And if you haven’t posted your review of Odds On on Amazon.com, or if you haven’t yet read the book, visit Amazon here.

It wasn’t that long ago that evidence-based investing was a radical idea that flew in the face of the Wall Street establishment. It started as an underground movement, slowly gaining popularity as select institutions and small firms took the plunge and clients gained trust in a new approach. The foundation of this new trend was based on the Efficient Market Hypothesis (EMH) formulated in 1960 by University of Chicago Booth School of Business professor Eugene Fama. The premise states that because financial markets are very efficient at processing information, breaking news, or data that might affect the value of a company’s stock or bonds, they will quickly incorporate it into the price of those assets.

The price of a stock or bond reflects all public information available to investors at any given time, so it’s not likely to find a truly overvalued or undervalued investment. This is a big shift in thinking from traditional approaches to investing, which touted the undervalued investment as a means to getting rich. But it’s a myth. News that assumes revenues are going to grow is available to everyone. So everyone will act accordingly and make the same purchases, reflecting in the stock price. Essentially, it’s a level playing field because everyone has the same information. “Beating the market” is an outdated concept.

The term efficient market is a bit of a misnomer, as it isn’t perfectly efficient. Once in a while an investment may actually be undervalued for a period of time, so a quick move before the rest of the market catches on may yield some benefit. But it’s highly unlikely that any given investor (professional or amateur) will be able to take advantage of such inefficiencies on a consistent basis. Outguessing the market is risky and investors get it wrong more often then they get it right.

Evidence-based investing has taken the betting out of the process, relying instead on sound strategies that reflect the realities of the market. Investing in funds similar to index funds that target different areas of the market is a way to harness the growth of the global economy. The investor’s unique circumstances and the right mix of small company stocks, large company stocks, international stocks, etc., will help determine the plan. The key is to stick with it and let the financial markets do their job. A lower rate of activity saves money on brokerage fees and taxes, not to mention that it’s less stressful than trying to keep pace with fluctuations and short-term market swings.

Investment trends and theories come and go, but using data to build better portfolios is simply good business. The evidence speaks for itself.

This April, the Department of Labor issued its new fiduciary rule, which will require any advisor giving advice to retirement account holders to act in the client’s best interest. It certainly sounds like an obvious improvement, and we’re pleased to see some forward progress on this notion of a more global fiduciary standard. Remember, Hill Investment Group has been acting in the capacity of a fiduciary for our clients since the founding of our firm.

Nevertheless, we’re not all that hopeful to see newly minted fiduciaries taking on the title anywhere near its fullest extent. Their clients may be scratching their heads since surveys indicate that many already thought they had a fiduciary commitment from their advisor. In reality, they’ve been subjected to the suitability standard. It’s is far more common and gives a wide berth to advisors when defining what might be best suited for a particular client (think of high cost, proprietary, commission-based products).

Interested in additional reading on this topic?

• “What New Rules on Retirement Savings Mean for Investors” in The New York Times
• “Fiduciary Rule Better Protects Investor Interests” from Morningstar